A consortium called Evolution Rail has achieved contractual close on the Victorian Government's $2 billion High Capacity Metro Trains (HCMT) project. This consortium comprises Downer EDI
(ASX:DOW), Plenary Group and CRRC.
This project involves the consortium delivering 65 brand new high capacity trains. They are intended to be safer, more reliable, and have 20% more space than existing trains in Victoria – to reduce overcrowding.
Downer says these new trains will incorporate over 60% local content. The company will also invest $16 million to revitalise its Newport manufacturing facility so it can meet the demands of a project of this magnitude.
Downer EDI posted a net profit of $180.6 million at 30 June 2016.